Full Year 2026 Verbrec Ltd Earnings Call
Speaker #1: And Chief Executive Officer of Verbrec. I'd like to begin by acknowledging the traditional custodians of the land on which we meet today, and pay my respects to their elders, past, present, and emerging.
[CEO] (Verbrec): and Chief Executive Officer of Verbrec. I would like to begin by acknowledging the traditional custodians of the land on which we meet today, and pay my respects to their elders, past, present, and emerging. I am also joined this afternoon by Richard Aden, our Chief Financial Officer, and Joel Voss, our Company Secretary. Financial year 2026 has been the most significant year in Verbrec's recent history. We divested a business, we acquired a business, we grew revenue by more than 50%, strengthened the balance sheet, and increased dividends. Today, I will take you through the Verbrec highlights, the commitments we have delivered against, who we are today, our financial performance, and our outlook and guidance for financial year 2027. This presentation contains forward-looking statements and forecasts. The statements should not be relied upon as a guarantee of future performance or results.
Mark Read: and Chief Executive Officer of Verbrec. I would like to begin by acknowledging the traditional custodians of the land on which we meet today, and pay my respects to their elders, past, present, and emerging. I am also joined this afternoon by Richard Aden, our Chief Financial Officer, and Joel Voss, our Company Secretary. Financial year 2026 has been the most significant year in Verbrec's recent history. We divested a business, we acquired a business, we grew revenue by more than 50%, strengthened the balance sheet, and increased dividends. Today, I will take you through the Verbrec highlights, the commitments we have delivered against, who we are today, our financial performance, and our outlook and guidance for financial year 2027. This presentation contains forward-looking statements and forecasts. The statements should not be relied upon as a guarantee of future performance or results.
Speaker #1: I'm also joined this afternoon by Richard Aiden, our Chief Financial Officer, and Joe Voss, Joe Voss, our Company Secretary. Financial Year 2026 has been the most significant year in Verbrec's recent history.
Speaker #1: We divested a business, we acquired a business, we grew revenue by more than 50%, strengthened the balance sheet, and increased dividends. Today I'll take you through the Verbrec highlights, the commitments we have delivered against, who we are today, our financial performance, and our outlook and guidance for financial year 2027.
Speaker #1: This presentation contains forward-looking statements and forecasts. The statements should not— that should not be relied upon as a guarantee of future performance or results.
Speaker #1: And unlike prior years, this presentation does include— it does include— earnings guidance for financial year 2027, which I'll come to later. Let me start with the headline numbers.
[CEO] (Verbrec): Unlike prior years, this presentation does include earnings guidance for financial year 2027, which I will come to later. Let me start with the headline numbers. Revenue from continuing operations grew 52% to AUD 118.5 million. Adjusted EBITDA grew 47% to AUD 8.7 million. Net profit after tax, before the amortization of acquired intangibles, has more than doubled, up 107% to AUD 4.2 million. Our cash and cash equivalents increased 182%, up from AUD 7.1 million to the AUD 20.2 million this year. Our balance sheet is materially stronger. Our net cash position, that is cash less borrowings, was AUD 11.7 million against the AUD 2.3 million a year ago. We have declared total dividends of AUD 0.25 cents per share for financial year 2026, an interim of AUD 0.1 cents, and a final of AUD 0.15 cents. This is 150% increase on financial year 2025.
Mark Read: Unlike prior years, this presentation does include earnings guidance for financial year 2027, which I will come to later. Let me start with the headline numbers. Revenue from continuing operations grew 52% to AUD 118.5 million. Adjusted EBITDA grew 47% to AUD 8.7 million. Net profit after tax, before the amortization of acquired intangibles, has more than doubled, up 107% to AUD 4.2 million. Our cash and cash equivalents increased 182%, up from AUD 7.1 million to the AUD 20.2 million this year. Our balance sheet is materially stronger. Our net cash position, that is cash less borrowings, was AUD 11.7 million against the AUD 2.3 million a year ago. We have declared total dividends of AUD 0.25 cents per share for financial year 2026, an interim of AUD 0.1 cents, and a final of AUD 0.15 cents. This is 150% increase on financial year 2025.
Speaker #1: Revenue from continuing operations grew 52% to $118.5 million. Adjusted EBITDA grew 47% to $8.7 million. Net profit after tax and before the amortization of acquired intangibles has more than doubled, up 107% to $4.2 million.
Speaker #1: Our cash and cash equivalents increased 182%, up from $7.1 million to the $20.2 million this year. Our balance sheet is materially stronger, our net cash position— that's cash less borrowings— was $11.7 million against a $2.3 million a year ago.
Speaker #1: And we have declared total dividends of 0.25 cents per share for financial year 2026, an interim of 0.1 cents, and a final of 0.15 cents.
Speaker #1: This is 150% increase on financial year 2025. During 2026, we divested compancy training, so that business has presented as a discontinued operation, and the financial year 2025 comparatives have been restated on the same basis.
[CEO] (Verbrec): During 2026, we divested Competency Training, so that business is presented as a discontinued operation and the financial year 2025 comparatives have been restated on the same basis. The AUD 77.9 million financial year 2025 revenue figure on these slides is the restated continuing operations number, not the AUD 85.6 million we reported last year. Every growth rate in this presentation is a like for like comparison. Before I go to the numbers in detail, I would like to spend a moment on this slide because it actually matters more to me than any other slide in this deck. Over the last three years, this board and this management team have made a series of specific public commitments to shareholders. We keep track of them internally. In 2023, we said we would divest the unprofitable parts of the training business and return the company to profitability. By 2024, we had done both.
Mark Read: During 2026, we divested Competency Training, so that business is presented as a discontinued operation and the financial year 2025 comparatives have been restated on the same basis. The AUD 77.9 million financial year 2025 revenue figure on these slides is the restated continuing operations number, not the AUD 85.6 million we reported last year. Every growth rate in this presentation is a like for like comparison. Before I go to the numbers in detail, I would like to spend a moment on this slide because it actually matters more to me than any other slide in this deck. Over the last three years, this board and this management team have made a series of specific public commitments to shareholders. We keep track of them internally. In 2023, we said we would divest the unprofitable parts of the training business and return the company to profitability. By 2024, we had done both.
Speaker #1: The 77.9 million financial year 2025 revenue figure on these slides is the restated continuing operations number, not the 85.6 million we reported last year.
Speaker #1: And every growth rate in this presentation is a like-for-like comparison. Before I go to the numbers in detail, I'd like to spend a moment on this slide, because it actually matters more to me than any other slide in this deck.
Speaker #1: Over the last 3 years, this board and this management team have made a series of specific public commitments to shareholders. We keep track of them internally.
Speaker #1: In 2023, we said we would divest the unprofitable parts of the training business and return the company to profitability. By 2024, we had done both.
Speaker #1: We said we would grow the proportion of revenue from relationship clients and improve gross margins. Both have moved in the right direction, year after year.
[CEO] (Verbrec): We said we would grow the proportion of revenue from relationship clients and improve gross margins. Both have moved in the right direction year after year. We said we would restore a net cash position and pass all our banking covenants. Net cash was restored in 2025 and stands at AUD 11.7 million today. Every covenant has been passed since we made that commitment. We said we would reintroduce a dividend. In 2025, we did, for the first time in over a decade, and now we are growing it. We said we would consider acquisitions aligned with our strategy and release capital from non-core assets. We acquired Alliance Automation from Telstra, and we sold Competency Training to RelyOn Australia. We said we would grow revenues in financial year 2026 and deliver against guidance, and we did. 10 commitments, 10 delivered.
Mark Read: We said we would grow the proportion of revenue from relationship clients and improve gross margins. Both have moved in the right direction year after year. We said we would restore a net cash position and pass all our banking covenants. Net cash was restored in 2025 and stands at AUD 11.7 million today. Every covenant has been passed since we made that commitment. We said we would reintroduce a dividend. In 2025, we did, for the first time in over a decade, and now we are growing it. We said we would consider acquisitions aligned with our strategy and release capital from non-core assets. We acquired Alliance Automation from Telstra, and we sold Competency Training to RelyOn Australia. We said we would grow revenues in financial year 2026 and deliver against guidance, and we did. 10 commitments, 10 delivered.
Speaker #1: We said we would restore a net cash position and parcel our banking covenants. Net cash was restored in 2025 and stands at $11.7 million today.
Speaker #1: Every covenant has been passed since we made that commitment. We've said we'd reintroduce a dividend. In 2025, we did, for the first time in over a decade, and now we are growing it.
Speaker #1: We said we would consider acquisitions aligned with our strategy, and release capital from non-core assets. We acquired Alliance Automation from Telstra, and we sold Compancy Training to Reliant Australia.
Speaker #1: We said we would grow revenues in financial year 2026 and deliver against guidance, and we did. 10 commitments, 10 delivered. We are proud of our track record and aim to continue to deliver against our future commitments.
[CEO] (Verbrec): We are proud of our track record and aim to continue to deliver against our future commitments. This slide summarizes why we believe Verbrec is a compelling investment story today. We have strong growth. Revenue is up 52%, adjusted EBITDA up 47%. We have strong visibility. Work in hand is up 77% to AUD 78 million, and our opportunities pipeline has more than doubled, up 111% to AUD 277 million. For financial year 2027, we are guiding revenue of AUD 140 to 160 million and adjusted EBITA of AUD 10 to 12 million. Half of our financial year 2026 revenue was repeatable or recurring, generated under multi-year panel agreements and operations and maintenance contracts. We have a strong balance sheet. We are cash generative with a balance sheet that can fund further bolt-on acquisitions without material dilution. Lastly, we have a strong strategy and our go-to-market strategy has not changed.
Mark Read: We are proud of our track record and aim to continue to deliver against our future commitments. This slide summarizes why we believe Verbrec is a compelling investment story today. We have strong growth. Revenue is up 52%, adjusted EBITDA up 47%. We have strong visibility. Work in hand is up 77% to AUD 78 million, and our opportunities pipeline has more than doubled, up 111% to AUD 277 million. For financial year 2027, we are guiding revenue of AUD 140 to 160 million and adjusted EBITA of AUD 10 to 12 million. Half of our financial year 2026 revenue was repeatable or recurring, generated under multi-year panel agreements and operations and maintenance contracts. We have a strong balance sheet. We are cash generative with a balance sheet that can fund further bolt-on acquisitions without material dilution. Lastly, we have a strong strategy and our go-to-market strategy has not changed.
Speaker #1: This summer— this slide summarizes why we believe Verbrec is a compelling investment story today. We have made— we have strong growth, revenue is up 52%, adjusted EBITDA up 47%.
Speaker #1: We have strong visibility. Work in hand is up 77% to 78 million dollars, and our opportunities pipeline has more than doubled, up 111% to 277 million.
Speaker #1: For financial year 2027, we are guiding revenue of $140 to $160 million, and adjusted EBITDA of 10 to 12 million. Half of our financial year 2026 revenue was repeatable or recurring, generated under multi-year panel agreements and operations and maintenance contracts.
Speaker #1: We have a strong balance sheet. We are cash generative, with a balance sheet that can fund further bolt-on acquisitions without material dilution. And lastly, we have a strong strategy, and our go-to-market strategy has not changed.
Speaker #1: We land early through advisory, audit, feasibility, front-end engineering, we embed our teams alongside our clients, we expand by cross-selling across the lifecycle of the asset, and we compound that into multi-year recurring revenue.
[CEO] (Verbrec): We land early through advisory, audit, feasibility, front-end engineering. We embed our teams alongside our clients. We expand by cross-selling across the life cycle of the asset, and we compound that into multi-year recurring revenue. For those of you who are not familiar with the Verbrec story, I will cover who we are today. Verbrec is an integrated engineering and digital transformation company operating across Australia, New Zealand, and the Pacific. We work in the energy, mining, water, and defense industries. What makes us different is that we work across the entire life cycle of an asset. We advise, plan, and secure. We design and engineer. We control, automation and integrate. We build, commission and operate. We improve, optimize, and extend. When the asset reaches the end of its life, we decommission, repurpose, and close it out. Very few companies of our size can do all six.
Mark Read: We land early through advisory, audit, feasibility, front-end engineering. We embed our teams alongside our clients. We expand by cross-selling across the life cycle of the asset, and we compound that into multi-year recurring revenue. For those of you who are not familiar with the Verbrec story, I will cover who we are today. Verbrec is an integrated engineering and digital transformation company operating across Australia, New Zealand, and the Pacific. We work in the energy, mining, water, and defense industries. What makes us different is that we work across the entire life cycle of an asset. We advise, plan, and secure. We design and engineer. We control, automation and integrate. We build, commission and operate. We improve, optimize, and extend. When the asset reaches the end of its life, we decommission, repurpose, and close it out. Very few companies of our size can do all six.
Speaker #1: For those of you who are not familiar with the Verbrec story, I'll— I'll cover who we are today. Verbrec is an integrated engineering and digital transformation company operating across Australia, New Zealand, and the Pacific.
Speaker #1: We work in the energy, mining, water, and defense industries. What makes us different is that we work across the entire lifecycle of an asset.
Speaker #1: We advise, plan, and secure. We design and engineer. We control automation and integrate. We build, commission, and operate. We improve optimize and extend. When the asset reaches the end of its life, we decommission, repurpose, and close it out.
Speaker #1: Very few companies of our size can do all six. It means we can enter a client relationship at any point and stay in it for many years, and future designs are constantly being improved by applying our operations and maintenance experiences.
[CEO] (Verbrec): It means we can enter a client relationship at any point and stay in it for many years, and future designs are constantly being improved by applying our operations and maintenance experiences. Below that, you will see our six growth markets. To pick up just a couple of those markets, first one, gas market transition, electrification and energy storage. Australia's East Coast is facing a gas supply gap, and much of the infrastructure that moves gas around the country is aging. That means new pipelines, new compression, and life extension on the assets already in the ground. We design that infrastructure, we build it, and then we operate it. The Beetaloo Sub-basin in the Northern Territory is one of the most significant new gas developments in the country, and we are already working on it.
Mark Read: It means we can enter a client relationship at any point and stay in it for many years, and future designs are constantly being improved by applying our operations and maintenance experiences. Below that, you will see our six growth markets. To pick up just a couple of those markets, first one, gas market transition, electrification and energy storage. Australia's East Coast is facing a gas supply gap, and much of the infrastructure that moves gas around the country is aging. That means new pipelines, new compression, and life extension on the assets already in the ground. We design that infrastructure, we build it, and then we operate it. The Beetaloo Sub-basin in the Northern Territory is one of the most significant new gas developments in the country, and we are already working on it.
Speaker #1: Below that, you will see our six growth markets. To pick up just a couple of those markets, the first one, gas market transition, electrification, and energy storage, Australia's East Coast is facing a gas-supplied gap, and much of the infrastructure that moves gas around the country pipelines, new compression, and life extension on the assets already in the ground.
Speaker #1: We designed that infrastructure, we built it, and then we operate it. The Betelgeuse subbasin in the Northern Territory is one of the most significant new gas developments in the country, and we are already working on it.
Speaker #1: The electricity grid is being rebuilt at a scale this country is not attempted before. And data set of demand is now adding to that load.
[CEO] (Verbrec): The electricity grid is being rebuilt at a scale this country has not attempted before, and data center demand is now adding to that load. Enormous capital is flowing in. Our contribution is power systems, electrical and high voltage engineering, building management systems, and operational readiness work. Every phase of that cycle is work for us and it is in the market we know best. Automation, machine learning and cybersecurity. Our clients are replacing legacy technology, chasing asset efficiency, and trying to turn the operational data they already own into decisions they can act on. This is the capability that Alliance Automation brings to our portfolio. Much of it is recurring and we sell it to existing clients.
Mark Read: The electricity grid is being rebuilt at a scale this country has not attempted before, and data center demand is now adding to that load. Enormous capital is flowing in. Our contribution is power systems, electrical and high voltage engineering, building management systems, and operational readiness work. Every phase of that cycle is work for us and it is in the market we know best. Automation, machine learning and cybersecurity. Our clients are replacing legacy technology, chasing asset efficiency, and trying to turn the operational data they already own into decisions they can act on. This is the capability that Alliance Automation brings to our portfolio. Much of it is recurring and we sell it to existing clients.
Speaker #1: Enormous capital is flowing in. Our contribution is power systems, electrical and high-voltage engineering, building management systems, and operational readiness work. Every phase of that cycle is work for us, and it is how— and it is in the market we know best.
Speaker #1: Automation machine learning and cybersecurity. Our clients are replacing legacy technology chasing asset efficiency and trying to turn the operational data they already own into decisions they can act on.
Speaker #1: This is the capability that Alliance Automation brings to our portfolio. Much of it is recurring, and we sell it to existing clients. A great deal of Australia's critical infrastructure was designed and built long before anyone had contemplated being attacked, and control systems were meant to sit isolated on a plant and they now find they're connected.
[CEO] (Verbrec): A great deal of Australia's critical infrastructure was designed and built long before anyone had contemplated it being attacked. Control systems were meant to sit isolated on a plant, and they now find they are connected. We can offer digital transformation aligned with the latest in cybersecurity standards and requirements. There are not many that can offer both those capabilities under one roof. In summary, Verbrec is positioned where Australia's infrastructure spend is expected to grow. We operate under five brands: Verbrec Engineering Services, delivering multidisciplinary engineering and project delivery from concept and FEED front-end engineering design, through to EPC construction and commissioning; Verbrec Asset Management that improves efficiency, reduces costs, and extends asset life with a specialist SAP and data management capability; Verbrec Operations & Maintenance cost effectively and reliably operates more than 2,000 kilometers of critical gas pipeline and the associated compression and process plant.
Mark Read: A great deal of Australia's critical infrastructure was designed and built long before anyone had contemplated it being attacked. Control systems were meant to sit isolated on a plant, and they now find they are connected. We can offer digital transformation aligned with the latest in cybersecurity standards and requirements. There are not many that can offer both those capabilities under one roof. In summary, Verbrec is positioned where Australia's infrastructure spend is expected to grow. We operate under five brands: Verbrec Engineering Services, delivering multidisciplinary engineering and project delivery from concept and FEED front-end engineering design, through to EPC construction and commissioning; Verbrec Asset Management that improves efficiency, reduces costs, and extends asset life with a specialist SAP and data management capability; Verbrec Operations & Maintenance cost effectively and reliably operates more than 2,000 kilometers of critical gas pipeline and the associated compression and process plant.
Speaker #1: So we can offer digital— so we can offer digital transformation aligned with the latest in cybersecurity standards and requirements. There's not many that can offer both those capabilities under one roof.
Speaker #1: In summary, Verbrec is positioned where Australia's infrastructure spend is expected to grow. We operate under five brands. Verbrec Engineering Services, delivering multidisciplinary engineering and project delivery, from concept and feed, front-end engineering design, through to EPC, construction and commissioning.
Speaker #1: Verbrec Asset Management, that improves efficiency, reduces costs, and extends asset life, with a specialist SAP and data management capability. Verbrec Operations and Maintenance, cost-effectively and reliably operates more than 2,000 kilometers of critical gas pipeline and the associated compression and process plant.
Speaker #1: Alliance Automation, acquired in December 2025, is one of Australia's leading independent industrial automation, cybersecurity, and electrical engineering firms. And Stacks On is our own digital twin software for mining stockyard management, licensed on a software-as-a-service basis, and deployed at every BHPI and all mine and port in Western Australia.
[CEO] (Verbrec): Alliance Automation, acquired in December 2025, is one of Australia's leading independent industrial automation, cybersecurity, and electrical engineering firms. StacksOn is our own digital twin software for mining stockyard management, licensed on a software-as-a-service basis and deployed at every BHP Iron Ore mine and port in Western Australia. This slide is new this year and is here because Alliance Automation is the biggest change, the single biggest change, the single biggest opportunity for Verbrec in financial year 2026. Alliance brings us industrial automation and control, cybersecurity for operating assets, data and machine learning, electrical and instrument execution, and project and program management. In the seven years we owned it, during 2026, Alliance produced AUD 39 million of revenue. We expect to see revenue growth as Verbrec offers a broader range of services to our existing clients, as well as increasing our client numbers.
Mark Read: Alliance Automation, acquired in December 2025, is one of Australia's leading independent industrial automation, cybersecurity, and electrical engineering firms. StacksOn is our own digital twin software for mining stockyard management, licensed on a software-as-a-service basis and deployed at every BHP Iron Ore mine and port in Western Australia. This slide is new this year and is here because Alliance Automation is the biggest change, the single biggest change, the single biggest opportunity for Verbrec in financial year 2026. Alliance brings us industrial automation and control, cybersecurity for operating assets, data and machine learning, electrical and instrument execution, and project and program management. In the seven years we owned it, during 2026, Alliance produced AUD 39 million of revenue. We expect to see revenue growth as Verbrec offers a broader range of services to our existing clients, as well as increasing our client numbers.
Speaker #1: This slide is new this year, and is here because Alliance Automation is the biggest change— the single biggest change— the single biggest opportunity for Verbrec in financial year 2026.
Speaker #1: Alliance brings us industrial automation and control, cybersecurity for operating assets, data and machine learning, electrical and instrument execution, and project and program management. In the seven years we owned it, during 2026, Alliance produced 39 million dollars of revenue.
Speaker #1: We expect to see revenue growth as Verbrec offers a broad range of services to our existing clients, as well as increasing our client numbers.
Speaker #1: But the number I'd like to focus you on is the margin. In the period before we owned it, Alliance was running at an EBITDA margin of about 1.1%.
[CEO] (Verbrec): The number I would like to focus you on is the margin. In the period before we owned it, Alliance was running at an EBITDA margin of about 1.1%. In the seven months under Verbrec's ownership, that has improved to 4.8%. A lot of that is credit to the great management team we acquired along with the Alliance Automation transaction, who now have more flexibility to improve their business operations and delivery. Strategy is similar to the journey Verbrec went on between 2023 and 2025. It is about being more selective about the work we take on, delivering it more effectively, and holding the overhead base down while revenue grows. We can already demonstrate the impacts, and it is only just the beginning. There is more to come.
Mark Read: The number I would like to focus you on is the margin. In the period before we owned it, Alliance was running at an EBITDA margin of about 1.1%. In the seven months under Verbrec's ownership, that has improved to 4.8%. A lot of that is credit to the great management team we acquired along with the Alliance Automation transaction, who now have more flexibility to improve their business operations and delivery. Strategy is similar to the journey Verbrec went on between 2023 and 2025. It is about being more selective about the work we take on, delivering it more effectively, and holding the overhead base down while revenue grows. We can already demonstrate the impacts, and it is only just the beginning. There is more to come.
Speaker #1: In the seven months under Verbrec's ownership, that has improved to 4.8%. And a lot of that is credit to the great management team we acquired along with the Alliance Automation transaction, who now have more flexibility to improve their business operations and delivery.
Speaker #1: Strategy is similar to the journey Verbrec went on between 2023 and 2025. It's about being more selective about the work we take on, delivering it more effectively, and holding the overhead base down while revenue grows.
Speaker #1: We can already demonstrate the impacts— and it's only just the beginning— there's more to come. The revenue base and the scale of this acquisition gives us real integration benefits to realize over time, and our stated goal remains to bring group margins to 8 to 10%.
[CEO] (Verbrec): The revenue base and the scale of this acquisition gives us real integration benefits to realize over time. Our stated goal remains to bring group margins to 8% to 10% on a much larger revenue base. As I discussed previously, our whole of life business model builds very strong long-term client relationships. These relationships are what generate our reliable revenue. We have 20 key clients, 87 multi-year panel agreements, and 15 multi-year operations and maintenance contracts. Over 60% of our revenue in financial year 2026 came from our top 20 relationship clients, and 50% came from multi-year agreements. Looking at the sector chart on the left, we are a business overwhelmingly weighted to energy at around 60% of revenue. Today, we are genuinely diversified. We now have over 700 team members across 14 regional locations in Australia, New Zealand, and Papua New Guinea, and clients in every state of Australia.
Mark Read: The revenue base and the scale of this acquisition gives us real integration benefits to realize over time. Our stated goal remains to bring group margins to 8% to 10% on a much larger revenue base. As I discussed previously, our whole of life business model builds very strong long-term client relationships. These relationships are what generate our reliable revenue. We have 20 key clients, 87 multi-year panel agreements, and 15 multi-year operations and maintenance contracts. Over 60% of our revenue in financial year 2026 came from our top 20 relationship clients, and 50% came from multi-year agreements. Looking at the sector chart on the left, we are a business overwhelmingly weighted to energy at around 60% of revenue. Today, we are genuinely diversified. We now have over 700 team members across 14 regional locations in Australia, New Zealand, and Papua New Guinea, and clients in every state of Australia.
Speaker #1: On a much larger revenue base. As I discussed previously, our whole-of-life business model builds very strong, long-term client relationships. These relationships are what generate our reliable revenue.
Speaker #1: We have 20 key clients, 87 multi-year panel agreements, and 15 multi-year operations and maintenance contracts. Over 60% of our revenue and financial year 2026 came from our top 20 relationship clients, and 50% came from multi-year agreements.
Speaker #1: Looking at the sector chart on the left, we're a business overwhelmingly weighted to energy at around 60% of revenue. Today we are genuinely diversified.
Speaker #1: We now have over 700 team members across 14 regional locations in Australia, New Zealand, and Papua New Guinea, and clients in every state of Australia.
Speaker #1: Three projects from the year that show what the combined group can do. And the first one, the MacArthur River Pipeline Bi-directional Upgrade for power and water corporation, with an approximate value of 21 million dollars.
[CEO] (Verbrec): Three projects from the year that show what the combined group can do. The first one, the McArthur River Pipeline bidirectional upgrade for Power and Water Corporation, with an approximate value of AUD 21 million. This project will help unlock first commercial gas from the Beetaloo Sub-basin and materially strengthen security of gas supply in the Northern Territory and beyond. We are supporting one of the most significant new gas developments in Australia. The second, Alliance Automation has been engaged to modernize the distributed control system at Kalgoorlie Consolidated Gold Mines, the Super Pit, if you like. This is recognized as one of the largest automation and modernization projects in Australia's gold sector, upgrading legacy infrastructure to improve reliability and operational performance across mining and processing systems. Thirdly, SA Water's Regional Desalination Program, providing sustainable potable water to the remote communities of Oodnadatta, Marla, Amata.
Mark Read: Three projects from the year that show what the combined group can do. The first one, the McArthur River Pipeline bidirectional upgrade for Power and Water Corporation, with an approximate value of AUD 21 million. This project will help unlock first commercial gas from the Beetaloo Sub-basin and materially strengthen security of gas supply in the Northern Territory and beyond. We are supporting one of the most significant new gas developments in Australia. The second, Alliance Automation has been engaged to modernize the distributed control system at Kalgoorlie Consolidated Gold Mines, the Super Pit, if you like. This is recognized as one of the largest automation and modernization projects in Australia's gold sector, upgrading legacy infrastructure to improve reliability and operational performance across mining and processing systems. Thirdly, SA Water's Regional Desalination Program, providing sustainable potable water to the remote communities of Oodnadatta, Marla, Amata.
Speaker #1: This project will help unlock first commercial gas from the Beedaloo subbasin and materially strengthen the security of gas supply in the Northern Territory and beyond.
Speaker #1: We are supporting one of the most significant new gas developments in Australia. The second, Alliance Automation has been engaged in modernizing the distributed control system at Calgary Consolidated Gold Mine, the super pit, if you like.
Speaker #1: This is recognized as one of the largest automation and modernization projects in Australia's gold sector, upgrading legacy infrastructure to improve reliability and operational performance across mining and processing systems.
Speaker #1: And thirdly, South Australia Awards Regional Desalination Program, providing sustainable potable water to the remote communities of Udandata, Mala, Amari. Verbrec provides site-wide electrical design, switchboards, and control panels, balanced supply and control systems, and integration into SA Water's SCADA system by satellite with 4G backup.
[CEO] (Verbrec): Verbrec provides site-wide electrical design, switchboards, and control panels, balance of plant control systems, and integration into SA Water's SCADA system by satellite with 4G backup. Gas, gold, and water. A year ago, only one of these three projects would've been ours. With Verbrec and Alliance Automation capabilities combined, a larger world of projects opens up to us. I'll now turn to our financial results for the year. This slide tells the Verbrec story of the last four years in two charts. From 2023 to financial year 2025, we were in turnaround and repair. We deliberately shrank the revenue line, walked away from work that did not make money, and we rebuilt our margins and our overhead base. Over that period, adjusted EBITDA went from a loss of around AUD 3 million to a profit of AUD 6 million on a smaller revenue base.
Mark Read: Verbrec provides site-wide electrical design, switchboards, and control panels, balance of plant control systems, and integration into SA Water's SCADA system by satellite with 4G backup. Gas, gold, and water. A year ago, only one of these three projects would've been ours. With Verbrec and Alliance Automation capabilities combined, a larger world of projects opens up to us. I'll now turn to our financial results for the year. This slide tells the Verbrec story of the last four years in two charts. From 2023 to financial year 2025, we were in turnaround and repair. We deliberately shrank the revenue line, walked away from work that did not make money, and we rebuilt our margins and our overhead base. Over that period, adjusted EBITDA went from a loss of around AUD 3 million to a profit of AUD 6 million on a smaller revenue base.
Speaker #1: Gas, gold, and water, a year ago, only one of these three projects would have been ours, with Verbrec and Alliance Automation capabilities combined a larger world of projects opens up to us.
Speaker #1: I'll now turn to our financial results for the year. This slide tells Verbrec's story of the last four years in two charts. From 2023 to financial year 2025, we're in turnaround and repair.
Speaker #1: We deliberately shrank the revenue line, walked away from work that did not make money, and we rebuilt our margins and our overhead base. Over that period, adjusted EBITDA went from a loss of around 3 million to a profit of 6 million, on a smaller revenue base.
Speaker #1: Financial year 2026 is the start of the growth phase, which is evident from our year-on-year revenue and EBITDA growth. While some major energy projects were delayed during financial year 2026 due to political, geopolitical uncertainty, we did not see the project cancellations.
[CEO] (Verbrec): Financial year 2026 is the start of a growth phase, which is evident from our year-on-year revenue and EBITDA growth. While some major energy projects were delayed during financial year 2026 due to geopolitical uncertainty, we did not see the project cancellations. We are now seeing these opportunities reemerge, supporting growth into 2027. We spent three years building a business that sustained profitability, and now we are in the growth phase. Our cash position too has been transformed. Net cash has grown from AUD 2.3 million in June 2025 to AUD 11.7 million in June 2026. On dividends, last year we paid a final dividend of AUD 0.1 cents per share, our first in more than a decade. This year, we've declared a total of AUD 2.25 cents per share. Turning to profit and loss for continuing operations. Revenue of AUD 118 million against AUD 77.9 million.
Mark Read: Financial year 2026 is the start of a growth phase, which is evident from our year-on-year revenue and EBITDA growth. While some major energy projects were delayed during financial year 2026 due to geopolitical uncertainty, we did not see the project cancellations. We are now seeing these opportunities reemerge, supporting growth into 2027. We spent three years building a business that sustained profitability, and now we are in the growth phase. Our cash position too has been transformed. Net cash has grown from AUD 2.3 million in June 2025 to AUD 11.7 million in June 2026. On dividends, last year we paid a final dividend of AUD 0.1 cents per share, our first in more than a decade. This year, we've declared a total of AUD 2.25 cents per share. Turning to profit and loss for continuing operations. Revenue of AUD 118 million against AUD 77.9 million.
Speaker #1: We are now seeing these opportunities re-emerge, supporting growth into 2027. We spent three years building a business that sustained profitability and now we are in growth phase.
Speaker #1: Our cash position too has been transformed. Net cash has grown from 2.3 million in June 2025 to 11.7 million in June 2026. On dividends, last year we paid a final dividend of 0.1 cents per share, our first in more than a decade.
Speaker #1: This year we've declared a total of 2.25 cents per share. Turning to profit and loss for continuing operations. Revenue of 118 million against 77.9 million.
Speaker #1: Gross profit of 42.1 million at a gross margin of 35.5%, up from 34.8%. So we are converting revenue to gross profit more efficiently than last year, on a much larger revenue base, with a materially different business mix.
[CEO] (Verbrec): Gross profit of AUD 42.1 million, at a gross margin of 35.5%, up from 34.8%. We are converting revenue to gross profit more efficiently than last year on a much larger revenue base with a materially different business mix. Adjusted EBITDA of AUD 8.7 million, up 47%. I want to address the adjusted EBITDA margin directly because it moved from 7.6% last year to 7.3%. We acquired a business in Alliance Automation that was running at a 1.1% margin. We have already lifted it to 4.8% in seven months, but it's still below the group average, so while we're improving it still dilutes the group number. Our gross margins have improved and the underlying trend is moving in the right direction. Our stated goal remains 8% to 10% over time, and most of the integration work that gets us there is in front of us, not behind us.
Mark Read: Gross profit of AUD 42.1 million, at a gross margin of 35.5%, up from 34.8%. We are converting revenue to gross profit more efficiently than last year on a much larger revenue base with a materially different business mix. Adjusted EBITDA of AUD 8.7 million, up 47%. I want to address the adjusted EBITDA margin directly because it moved from 7.6% last year to 7.3%. We acquired a business in Alliance Automation that was running at a 1.1% margin. We have already lifted it to 4.8% in seven months, but it's still below the group average, so while we're improving it still dilutes the group number. Our gross margins have improved and the underlying trend is moving in the right direction. Our stated goal remains 8% to 10% over time, and most of the integration work that gets us there is in front of us, not behind us.
Speaker #1: Adjusted EBITDA of 8.7 million, up 47%. I want to adjust I want to address the adjusted EBITDA margin directly, because it moved from 7.6% last year to 7.3%.
Speaker #1: We acquired a business in Alliance Automation that was running at a 1.1% margin. We have already listed it to 4.8% in seven months. But it's still below the group average, so while we're improving it, it's still dilutes the group number.
Speaker #1: Our gross margins have improved, and the underlying trend is moving in the right direction. Our stated goal remains 8 to 10% overtime, and most of the integration work that gets us there is in front of us, not behind us.
Speaker #1: This slide reconciles the continuing operations result to our statutory result. I don't really plan to spend too much time on this slide. The principal difference is the divestment of competency training, which after the disposal of assets, liabilities, and goodwill, netted a gain on sale of 6.8 million dollars.
[CEO] (Verbrec): This slide reconciles the continuing operations result to our statutory result. I do not really plan to spend too much time on this slide. The principal difference is the divestment of Competency Training, which after the disposal of assets, liabilities, and goodwill, netted a gain on sale of AUD 6.8 million. I would encourage you to focus on the continuing operations numbers as it is a much better guide to the underlying business. The outcome of this sale is really a strong cash position that lets us invest in further growth. Our balance sheet is the strongest it has been in many years. Total assets of AUD 82 million, up from AUD 49.5 million. Total equity of AUD 34.6 million, up 45%. Trade and other receivables have grown to AUD 21.3 million and contract assets to AUD 5.1 million. Both consistent with our business that is 52% larger.
Mark Read: This slide reconciles the continuing operations result to our statutory result. I do not really plan to spend too much time on this slide. The principal difference is the divestment of Competency Training, which after the disposal of assets, liabilities, and goodwill, netted a gain on sale of AUD 6.8 million. I would encourage you to focus on the continuing operations numbers as it is a much better guide to the underlying business. The outcome of this sale is really a strong cash position that lets us invest in further growth. Our balance sheet is the strongest it has been in many years. Total assets of AUD 82 million, up from AUD 49.5 million. Total equity of AUD 34.6 million, up 45%. Trade and other receivables have grown to AUD 21.3 million and contract assets to AUD 5.1 million. Both consistent with our business that is 52% larger.
Speaker #1: I would encourage you to focus on the continuing operations numbers, as it is a much better guide to the underlying business. The outcome of this sale is really our strong cash position that lets us invest in further growth.
Speaker #1: Our balance sheet is the strongest it's been in many years. Total assets of 82 million, up from 49.5 million. Total equity of 34.6 million, up 45%.
Speaker #1: Trade and other receivables have grown to 21.3 million, and contract assets to 5.1 million, both consistent with our business that is 52% larger. Cash flows from operation, with 5.8 million, against 6.5 million last year.
[CEO] (Verbrec): Cash flows from operation was AUD 5.8 million against AUD 6.5 million last year. The AUD 5.8 million is after paying the external costs of both the Competency Training divestment and the Alliance Automation acquisition. Excluding those one-off transaction costs, operating cash inflow was AUD 6.8 million, ahead of last year. We closed the year with AUD 20.2 million in cash and cash equivalents, including those in the term deposits. Let me turn to the outlook and to our guidance for financial year 2027. Our forward revenue has improved significantly. Work in hand on a forward 12-month look-ahead basis increased 77% to AUD 78 million. The opportunity pipeline now stands at AUD 277 million, a 111% increase from the AUD 131 million of a year ago. I want to be clear about what is in that pipeline number because definitions vary between companies.
Mark Read: Cash flows from operation was AUD 5.8 million against AUD 6.5 million last year. The AUD 5.8 million is after paying the external costs of both the Competency Training divestment and the Alliance Automation acquisition. Excluding those one-off transaction costs, operating cash inflow was AUD 6.8 million, ahead of last year. We closed the year with AUD 20.2 million in cash and cash equivalents, including those in the term deposits. Let me turn to the outlook and to our guidance for financial year 2027. Our forward revenue has improved significantly. Work in hand on a forward 12-month look-ahead basis increased 77% to AUD 78 million. The opportunity pipeline now stands at AUD 277 million, a 111% increase from the AUD 131 million of a year ago. I want to be clear about what is in that pipeline number because definitions vary between companies.
Speaker #1: The 5.8 million is after paying the external costs of both the competency training divestment and the Alliance Automation acquisition. Excluding those one-off transaction costs, operating cash inflow was 6.8 million.
Speaker #1: Ahead of last year. We closed the year with 20.2 million in cash and cash equivalents, including those in the term deposits. Let me turn to the outlook and to our guidance for financial year 2027.
Speaker #1: A forward revenue has improved significantly, work in hand on a forward 12-month look-ahead basis increased 77% to 78 million dollars. The opportunity pipeline now stands at 277 million dollars, and a 111% increase from the 131 million of a year ago.
Speaker #1: I want to be clear about what's in that pipeline number, because definitions vary between companies. We only include opportunities where we have an active submitted proposal with a client.
[CEO] (Verbrec): We only include opportunities where we have an active submitted proposal with a client. Prospects and leads are tracked internally but are not reported in these numbers. The growth in both numbers is a direct result of the Alliance Automation acquisition and of our two businesses jointly developing proposals for clients we have in common. That cross-selling was the central thesis of the acquisition, and I am happy to say it is working. We made our guidance in 2026, delivering AUD 118.5 million revenue against the guidance of AUD 110 to 120 million, an adjusted EBITA of AUD 8.7 million against the guidance range of AUD 8 to 10 million. Our guidance is based on a track record of delivery, improved visibility, and substantially larger business than the one we operated two years ago. For 2027, we expect revenue of AUD 140 million to 160 million from continuing ops, an adjusted EBITA of AUD 10 to 12 million.
Mark Read: We only include opportunities where we have an active submitted proposal with a client. Prospects and leads are tracked internally but are not reported in these numbers. The growth in both numbers is a direct result of the Alliance Automation acquisition and of our two businesses jointly developing proposals for clients we have in common. That cross-selling was the central thesis of the acquisition, and I am happy to say it is working. We made our guidance in 2026, delivering AUD 118.5 million revenue against the guidance of AUD 110 to 120 million, an adjusted EBITA of AUD 8.7 million against the guidance range of AUD 8 to 10 million. Our guidance is based on a track record of delivery, improved visibility, and substantially larger business than the one we operated two years ago. For 2027, we expect revenue of AUD 140 million to 160 million from continuing ops, an adjusted EBITA of AUD 10 to 12 million.
Speaker #1: Prospects and leads attract internally, but are not reported in these numbers. The growth in both numbers is a direct result of the Alliance Automation acquisition and of our two businesses' jointly developing proposals for clients we have in common.
Speaker #1: That cross-selling was the central thesis of the acquisition, and I'm happy to say it's working. We met our guidance in 2026, delivering 118.5 million revenue against the guidance of 110 to 120, and adjusted EBITDA of 8.7 million against the guidance range of 8 to 10.
Speaker #1: Our guidance is based on a track record of delivery improved visibility and substantially larger business than the one we operated two years ago. So for 2027, we expect revenue of 140 million to 160 million from continuing ops, and adjusted EBITDA of 10 to 12 million.
Speaker #1: At the midpoint, that revenue guidance implies compound growth of 39% from financial year 2025 to 2027. The markets we serve have strong structural tailwinds.
[CEO] (Verbrec): At the midpoint, that revenue guidance implies compound growth of 39% from financial year 2025 to 2027. The markets we serve have strong structural tailwinds. Energy security and sovereignty is now a national priority. Gas pipeline investment continues as the energy mix evolves, and we are seeing engineering and EPC opportunities for new gas infrastructure. The Beetaloo Basin in the Northern Territory is a high priority area for us, as is the emerging Taroom Trough in Queensland. Moving to electrification and energy storage, grid upgrades are happening at an unprecedented scale nationally, and AEMO has forecast an energy shortfall by 2029. Data center development is likely to require a mix of traditional and renewable generation and battery storage. Then there is smart mining and critical minerals. Our clients are automating, instrumenting, and applying artificial intelligence to optimize their asset and supply chains.
Mark Read: At the midpoint, that revenue guidance implies compound growth of 39% from financial year 2025 to 2027. The markets we serve have strong structural tailwinds. Energy security and sovereignty is now a national priority. Gas pipeline investment continues as the energy mix evolves, and we are seeing engineering and EPC opportunities for new gas infrastructure. The Beetaloo Basin in the Northern Territory is a high priority area for us, as is the emerging Taroom Trough in Queensland. Moving to electrification and energy storage, grid upgrades are happening at an unprecedented scale nationally, and AEMO has forecast an energy shortfall by 2029. Data center development is likely to require a mix of traditional and renewable generation and battery storage. Then there is smart mining and critical minerals. Our clients are automating, instrumenting, and applying artificial intelligence to optimize their asset and supply chains.
Speaker #1: Energy security and sovereignty is now a national priority. Gas pipeline investment continues as the energy mix evolves, and we are seeing engineering and EPC opportunities for new gas infrastructure.
Speaker #1: The Betelgeuse basin in the Northern Territory is a high priority area for us, as is the emerging Tarum trough in Queensland. Moving to electrification and energy storage, grid upgrades are happening at an unprecedented scale nationally, and EMO has forecast an energy shortfall by 2029.
Speaker #1: Data center development is likely to require a mix of traditional and renewable generation and battery storage. Then there is smart mining and critical minerals.
Speaker #1: Our clients are automating instrumenting and applying artificial intelligence to optimize their asset and supply chains. This is exactly the combined capability of Verbrec and Alliance Automation now offer.
[CEO] (Verbrec): This is exactly the combined capability Verbrec and Alliance Automation now offer. Water accounted for 21% of our financial year 2026 revenue. Between Verbrec and Alliance Automation, we have relationships with the majority of water authorities in Australia. Critical infrastructure owners are modernizing and securing their assets, and this is a clear opportunity for us to move up the food chain. I'd like to spend a moment on technology because it's what differentiates us from the pure-play engineering firms. Alliance Automation gives us industrial automation and machine learning capability. It completes the asset life cycle for us, and it secures a greater footprint in water, mining, and manufacturing. StacksOn is proven Verbrec intellectual property, is deployed at every BHP Iron Ore mine and port in Western Australia, and that agreement was extended for a further 3 years in 2026.
Mark Read: This is exactly the combined capability Verbrec and Alliance Automation now offer. Water accounted for 21% of our financial year 2026 revenue. Between Verbrec and Alliance Automation, we have relationships with the majority of water authorities in Australia. Critical infrastructure owners are modernizing and securing their assets, and this is a clear opportunity for us to move up the food chain. I'd like to spend a moment on technology because it's what differentiates us from the pure-play engineering firms. Alliance Automation gives us industrial automation and machine learning capability. It completes the asset life cycle for us, and it secures a greater footprint in water, mining, and manufacturing. StacksOn is proven Verbrec intellectual property, is deployed at every BHP Iron Ore mine and port in Western Australia, and that agreement was extended for a further 3 years in 2026.
Speaker #1: And finally, water accounted for 21% of our financial year 2026 revenue, and between Verbrec and Alliance Automation, we have relationships with the majority of water authorities in Australia.
Speaker #1: Critical infrastructure owners are modernizing and securing their assets, and this is a clear opportunity for us to move up the food chain. I'd like to spend a moment on technology, because it's what differentiates us from the pure play engineering firms.
Speaker #1: Alliance Automation gives us industrial automation and machine learning capability. It completes the asset lifecycle for us, and it secures a greater footprint in water, mining, and manufacturing.
Speaker #1: Staxion is proven Verbrec intellectual property. It is deployed at every BHBI and all mine, and poured in Western Australia and that agreement was extended for a further three years in 2026.
Speaker #1: Cybersecurity for operating assets is a mandated requirement under the Security of Critical Infrastructure Act. What makes our position unusual is that we can operate the critical infrastructure we audit and secure.
[CEO] (Verbrec): Cybersecurity for operating assets is a mandated requirement under the Security of Critical Infrastructure Act. What makes our position unusual is that we can operate the critical infrastructure we audit and secure. Assessment work opens the door to remediation, monitoring, and ongoing 24/7 support contracts. Understandably, we are seeing a significant increase in cybersecurity concerns from industry. AI and data analytics turns the operational data our clients already own into decisions they can act on. Recurring higher-margin revenue that is not tied to a capital cycle sold to clients we already serve. This is an emerging capability for us. We hope to grow this in 2027. Briefly, our corporate position. We have 306 million shares on issue at a share price around AUD 0.19. This is a market capitalization of the order of AUD 58 million. Our register is closely held by long-term shareholders and our founding director.
Mark Read: Cybersecurity for operating assets is a mandated requirement under the Security of Critical Infrastructure Act. What makes our position unusual is that we can operate the critical infrastructure we audit and secure. Assessment work opens the door to remediation, monitoring, and ongoing 24/7 support contracts. Understandably, we are seeing a significant increase in cybersecurity concerns from industry. AI and data analytics turns the operational data our clients already own into decisions they can act on. Recurring higher-margin revenue that is not tied to a capital cycle sold to clients we already serve. This is an emerging capability for us. We hope to grow this in 2027. Briefly, our corporate position. We have 306 million shares on issue at a share price around AUD 0.19. This is a market capitalization of the order of AUD 58 million. Our register is closely held by long-term shareholders and our founding director.
Speaker #1: Assessment work opens the door to remediation, monitoring, and ongoing 24/7 support contracts. Understandably, we are seeing a significant increase in cybersecurity concerns from industry.
Speaker #1: And AA and data analytics turns the operational data our clients already own into decisions they can act on. Recurring higher margin revenue that is not tied to a capital cycle, sold to clients we already serve.
Speaker #1: This is an emerging capability for us, and we hope to grow this in 2027. To briefly our corporate position. We have 306 million shares on issue, and a share price around 19 cents.
Speaker #1: This is a market capitalization of the order of 58 million. Our register is closely held by long-term shareholders, and our founding director. My final slide covers how we intend to allocate capital and how the board and management are aligned with our shareholders.
[CEO] (Verbrec): My final slide covers how we intend to allocate capital and how the board and management are aligned with our shareholders. We will reinvest organically in people, capability, and technology, targeting the growing higher-margin parts of the business. A key focus area is the leveraging of AI to enhance productivity, creating greater value for our clients and shareholders. We will realize the multi-year synergies and integration benefits available across the group with a stated goal of 8% to 10% EBITA margins over time. We will continue a disciplined bolt-on acquisition strategy. We are shareholders too, and our incentives are tied directly to shareholder value. Around 26% of the shares on issue are held by your board and executive team. To close, financial year 2026 was the year Verbrec moved from turnaround to growth. We grew revenue 52%. We grew adjusted EBITA 47%.
Mark Read: My final slide covers how we intend to allocate capital and how the board and management are aligned with our shareholders. We will reinvest organically in people, capability, and technology, targeting the growing higher-margin parts of the business. A key focus area is the leveraging of AI to enhance productivity, creating greater value for our clients and shareholders. We will realize the multi-year synergies and integration benefits available across the group with a stated goal of 8% to 10% EBITA margins over time. We will continue a disciplined bolt-on acquisition strategy. We are shareholders too, and our incentives are tied directly to shareholder value. Around 26% of the shares on issue are held by your board and executive team. To close, financial year 2026 was the year Verbrec moved from turnaround to growth. We grew revenue 52%. We grew adjusted EBITA 47%.
Speaker #1: We will reinvest organically in people, capability, and technology, targeting the growing higher margin parts of the business. A key focus area is the leveraging of AI to enhance productivity, creating greater value for our clients and shareholders.
Speaker #1: We will realize the multi-year synergies in integration benefits available across the group, with the stated goal of 8 to 10% EBITDA margins over time.
Speaker #1: We will continue a disciplined bolt-on acquisition strategy. We are shareholders too, and our incentives are tied directly to shareholder value, around 26% of the shares on issue are held by your board and executive team.
Speaker #1: So to close, financial year 2026 was a year Verbrec moved from turnaround to growth. We grew revenue 52%. We grew adjusted EBITDA 47%. We more than doubled our net profit, and we increased our dividend by 150%.
[CEO] (Verbrec): We more than doubled our net profit, and we increased our dividend by 150%. We finished the year with AUD 20 million in cash and AUD 78 million order book. 10 commitments, 10 delivered. We have now guided to AUD 140 million to AUD 160 million of revenue and AUD 10 million to AUD 12 million of adjusted EBITA in financial year 2027, and we intend to deliver that too. I'd like to thank the amazing people across the Verbrec group of companies who did all the work that produced these results and our clients and shareholders for their continuing support. Thank you for your attendance. I'd now like to take the opportunity to respond to questions that have been submitted during the presentation.
Mark Read: We more than doubled our net profit, and we increased our dividend by 150%. We finished the year with AUD 20 million in cash and AUD 78 million order book. 10 commitments, 10 delivered. We have now guided to AUD 140 million to AUD 160 million of revenue and AUD 10 million to AUD 12 million of adjusted EBITA in financial year 2027, and we intend to deliver that too. I'd like to thank the amazing people across the Verbrec group of companies who did all the work that produced these results and our clients and shareholders for their continuing support. Thank you for your attendance. I'd now like to take the opportunity to respond to questions that have been submitted during the presentation.
Speaker #1: We finished the year with 20 million in cash and 78 million dollar order books. 10 commitments, 10 delivered. We have now guided to 140 to 160 million of revenue, and 10 to 12 million of adjusted EBITDA are in financial year 2027.
Speaker #1: And we intend to deliver that too. I'd like to thank the amazing people across the Verbrec group of companies who did all the work that produced these results, and our clients and shareholders for their continuing support.
Speaker #1: Thank you for your attendance. I'd now like to take the opportunity to respond to questions that have been submitted during the presentation. So we have a few questions about Staxion.
Joel Voss: We have a few questions about StacksOn. I think people just want a general update on that business.
Joel Voss: We have a few questions about StacksOn. I think people just want a general update on that business.
Speaker #1: I think people just want a general update on that business.
Speaker #2: Yeah. Okay. Staxion. So Staxion is an exciting part of our business as I indicated in the presentation. We have extended the contract with BHB now, and INR for another three years.
[CEO] (Verbrec): Yeah. Okay. StacksOn. StacksOn's the exciting part of our business, as I indicated in the presentation. We have extended the contract with BHP Iron Ore for another 3 years and continue to extend the offerings to BHP as well. We are currently in negotiations with a number of other companies in iron ore and other commodities, looking at being able to sell our services to others. We are undertaking, as we speak, a paid study for one other client, and optimistic where the future will take that product. We also have a relationship where we communicated to the market with Datamine, and we are working with Datamine to extend the offering beyond Australia into South America and South Africa as well.
Mark Read: Yeah. Okay. StacksOn. StacksOn's the exciting part of our business, as I indicated in the presentation. We have extended the contract with BHP Iron Ore for another 3 years and continue to extend the offerings to BHP as well. We are currently in negotiations with a number of other companies in iron ore and other commodities, looking at being able to sell our services to others. We are undertaking, as we speak, a paid study for one other client, and optimistic where the future will take that product. We also have a relationship where we communicated to the market with Datamine, and we are working with Datamine to extend the offering beyond Australia into South America and South Africa as well.
Speaker #2: And continue to extend sort of the offerings to BHB as well. We are currently in negotiations with a number of other companies, in INR and other commodities, looking at being able to sell their services to others.
Speaker #2: We are undertaking, as we speak, a paid study for one other client. And sort of optimistic where the future will take that product. We also have a relationship where we communicated to the market with DataMine, and we are working with DataMine to extend the offering beyond Australia, into South America and South Africa as well.
Speaker #1: We have a couple of audience members who would like to know about the retention of key personnel and employees after the acquisition of Alliance Automation.
Joel Voss: We have a couple audience members who would like to know about the retention of key personal employees after the acquisition of Alliance Automation.
Joel Voss: We have a couple audience members who would like to know about the retention of key personal employees after the acquisition of Alliance Automation.
Speaker #2: Sure. Alliance Automation is we're really excited about where Alliance Automation is going. As you've probably got from the presentation, we're seeing some exciting synergies in the business, and we're seeing some exciting growth opportunities and some exciting wins.
[CEO] (Verbrec): Sure. We're really excited about where Alliance Automation is going. As you probably got from the presentation, we're seeing some exciting synergies in the business, and we're seeing some exciting growth opportunities and some exciting wins. We're really quite impressed with how the integration is going. We're seeing staff very keen to stay with the business. Turnover rates are very low. Enthusiasm and energy is very high. We look forward to having a more successful 2027 than we did in 2026.
Mark Read: Sure. We're really excited about where Alliance Automation is going. As you probably got from the presentation, we're seeing some exciting synergies in the business, and we're seeing some exciting growth opportunities and some exciting wins. We're really quite impressed with how the integration is going. We're seeing staff very keen to stay with the business. Turnover rates are very low. Enthusiasm and energy is very high. We look forward to having a more successful 2027 than we did in 2026.
Speaker #2: We've really quite impressed with how the integration is going. We're seeing staff very keen to stay with the business, turnover rates are very low, enthusiasm and energy is very high.
Speaker #2: We look forward to an even more successful 2027 than we did in 2026.
Speaker #1: And there's a few questions about the revenue growth of the traditional Verbrec business compared to Alliance Automation.
Joel Voss: There is a few questions about the revenue growth of the traditional Verbrec business as opposed to Alliance Automation.
Joel Voss: There is a few questions about the revenue growth of the traditional Verbrec business as opposed to Alliance Automation.
[CEO] (Verbrec): Sure. The revenue growth for the, what I call the traditional Verbrec business, was of the order of a couple of percent last year. There are a few reasons for that. One was we saw some projects in the H2 of the year delayed, and we did talk about that in presentations. Thankfully, those projects were not lost. It was really a response to the geopolitical situation we are experiencing at the moment. Those projects have not gone. They have been pushed down the road into 2027. Some of you will have seen announcements we made over the last few months, last few weeks, where some of those projects are now coming to fruition. So that perhaps reduced the revenues a bit in 2026, but we are very optimistic about the growth in 2027. Couple of other parts to that story.
Mark Read: Sure. The revenue growth for the, what I call the traditional Verbrec business, was of the order of a couple of percent last year. There are a few reasons for that. One was we saw some projects in the H2 of the year delayed, and we did talk about that in presentations. Thankfully, those projects were not lost. It was really a response to the geopolitical situation we are experiencing at the moment. Those projects have not gone. They have been pushed down the road into 2027. Some of you will have seen announcements we made over the last few months, last few weeks, where some of those projects are now coming to fruition. So that perhaps reduced the revenues a bit in 2026, but we are very optimistic about the growth in 2027. Couple of other parts to that story.
Speaker #2: Sure. Yeah. Yeah. The revenue growth for the what I call the traditional Verbrec business was of the order of a couple of percent last year.
Speaker #2: There are a few reasons for that. One was we saw some projects in the second half of the year delayed, and we did talk about that at in presentations.
Speaker #2: Thankfully, those projects were not lost. It was really a response to the geopolitical situation we're experiencing at the moment. But those projects have not gone.
Speaker #2: They've been pushed down the road into 2027. Some of you will have seen announcements we've made over the last few months, last few weeks.
Speaker #2: Where some of those projects are now coming to fruition. So that sort of perhaps reduced the revenues a bit in 2026, but we're very optimistic about the growth in 2027.
Speaker #2: A couple of other parts to that story. With the Alliance Automation, we did swing some of the revenue from the traditional Verbrec business into Alliance Automation, where it made sense.
[CEO] (Verbrec): With the Alliance Automation, we did swing some of the revenue from the traditional Verbrec business into Alliance Automation, where it made sense. So some revenue is declared in Alliance Automation rather than the traditional business. Probably the third piece to that was we did see a downturn in New Zealand with the oil and gas industry in New Zealand getting quite depressed. So that reduced the revenue. We have repurposed that business, repositioned that business, and now going forward very strongly again in New Zealand. So we look forward to greater revenues from New Zealand this year.
Mark Read: With the Alliance Automation, we did swing some of the revenue from the traditional Verbrec business into Alliance Automation, where it made sense. So some revenue is declared in Alliance Automation rather than the traditional business. Probably the third piece to that was we did see a downturn in New Zealand with the oil and gas industry in New Zealand getting quite depressed. So that reduced the revenue. We have repurposed that business, repositioned that business, and now going forward very strongly again in New Zealand. So we look forward to greater revenues from New Zealand this year.
Speaker #2: So some revenue is declared in Alliance Automation rather than the traditional business. Probably the third piece to that was we did see a downturn in New Zealand with the oil and gas industry in New Zealand getting quite depressed.
Speaker #2: So that reduced the revenue. We have repurposed that business, repositioned that business, and now going forward very strongly again in New Zealand. So we look forward to greater revenues from New Zealand this year.
Speaker #1: And one more is what part of the data center build-out out in Australia can Verbrec contribute to?
Joel Voss: One more is, what part of the data center build-out in Australia can Verbrec contribute to?
Joel Voss: One more is, what part of the data center build-out in Australia can Verbrec contribute to?
Speaker #2: Sure. Yeah. So a lot of areas in truth. From the power generation side, the power requirement. So that can come from a number of sources, as we know.
[CEO] (Verbrec): Sure. Yeah. A lot of areas, in truth. From the power generation side, the power requirement. That can come from a number of sources, as we know. If we look at the Beetaloo Basin, of course, there is a lot of interest in gas to generate the power there. So the power generation, the gas supply. We also are able to look at the water supply to those data centers as well. We are also involved in the building management systems that go along with the data centers. Yeah, we see a positive future for our involvement in data centers, and of course, just generally getting electricity from the grid as well.
Mark Read: Sure. Yeah. A lot of areas, in truth. From the power generation side, the power requirement. That can come from a number of sources, as we know. If we look at the Beetaloo Basin, of course, there is a lot of interest in gas to generate the power there. So the power generation, the gas supply. We also are able to look at the water supply to those data centers as well. We are also involved in the building management systems that go along with the data centers. Yeah, we see a positive future for our involvement in data centers, and of course, just generally getting electricity from the grid as well.
Speaker #2: If we look at the Betelgeuse Basin, of course, there's a lot of interesting gas to generate the power there. So the power generation,
Speaker #1: The gas supply . We also are able to look at the water supply to those data centers as well We're also we're also involved in the building management systems that go along with the data centers .
Speaker #1: So yeah , so we see , we see a positive future for , for our involved in data centers . And of course , just generally getting electricity from the grid as well
Speaker #2: As the rest of the questions that are quite detailed and financials , we're more likely to go back to that individual rather than .
Joel Voss: The rest of the questions, they are quite detailed with financials. We are more likely to go back to that individual rather than on the call.
Joel Voss: The rest of the questions, they are quite detailed with financials. We are more likely to go back to that individual rather than on the call.
[CEO] (Verbrec): Okay. No problem. Okay, well, thank you very much for your attendance today. I hope that helped educate you in Verbrec, and look forward to talking to shareholders into the future. Thank you.
Mark Read: Okay. No problem. Okay, well, thank you very much for your attendance today. I hope that helped educate you in Verbrec, and look forward to talking to shareholders into the future. Thank you.
Speaker #1: No problem Okay . Well , thank you very much for your attendance today . I hope that helped that educate you in Verbrec .
